Economic Survey 2026: 9.2 crore taxpayers, 7.4 percent growth rate; know BIG statement by CEA

New Delhi: The Economic Survey 2026 was presented on Thursday, stating that India's economy will continue to grow. Later in the afternoon, Chief Economic Advisor (CEA) V. Anantha Nageswaran held a press conference, elaborating on each point of the Economic Survey. He stated that India's economic growth has accelerated and inflation has also decreased significantly. He explained that these figures indicate strong domestic demand and that price pressures will ease considerably by the 26th financial year (FY26).

Giving a detailed presentation on the Economic Survey, the CEA said that real GDP growth has consistently increased. It averaged 6.4% during the 12th to 20th financial years (FY12-FY20), rising to 6.5% in the 25th financial year (FY25), and is projected to accelerate further to 7.4% in the 26th financial year (FY26). He said that if you compare the last few years to the pre-Covid average, the real GDP growth was 6.4% before Covid, and it was 6.5% in FY25, and this year it is projected to be 7.4%.

What are the reasons for the acceleration in India's economy?

The CEA explained that this growth is supported by strong domestic fundamentals, including consumption and investment. He said, "Private Final Consumption Expenditure (PFCE) growth remains robust, increasing from 6.8% during FY12-FY20 to 7.2% in FY25, and is projected to moderate slightly to 7.0% in FY26. Meanwhile, investment activity has picked up." The growth in real Gross Fixed Capital Formation (GFCF) has increased from 6.3% during the 12th to 20th financial years (FY12-FY20) to 7.1% in the 25th financial year (FY25), and is projected to reach 7.8% in the 26th financial year (FY26). This indicates sustained capital formation.

Has inflation declined?

On the inflation front, CEA Nageswaran emphasized that price pressures have eased considerably.

He stated that headline CPI (Consumer Price Index) inflation declined from 6.7% in FY23 to 5.4% in FY24.

It further decreased to 4.7% in FY25 and reached 1.7% in FY26 (up to December).

Core inflation (excluding gold and silver) also decreased, falling from 6.1% in FY23 to 3.0% in FY25, and slightly increasing to 2.9% in FY26 (up to December).

Has fiscal deficit been reduced?

The CEA further explained that the fiscal deficit (the difference between government spending and revenue) as a percentage of GDP has consistently decreased over the past few years.

After peaking at 9.2% in FY21, the fiscal deficit fell to 6.7% in FY22, 6.5% in FY23, and 5.5% in FY24. The revised estimate (RE) for the 25th financial year (FY25) is 4.8%, and the budget estimate (BE) for the 26th financial year (FY26) aims to further reduce it to 4.4%. He said that the primary deficit has also consistently declined, reflecting improved fiscal discipline.

What is the revenue growth report?

The CEA stated that revenue performance has been robust, supported by consistently strong collections and an expanding direct tax base. Gross tax revenue averaged 10.8% of GDP during FY16-FY20, which increased to 11.5% in the post-pandemic period (FY22-FY25). Personal income tax collections, which were 2.4% of GDP in the pre-pandemic years, rose to 3.3% in the post-pandemic period.

Is there an Increase in number of taxpayers?

The expansion of the tax base has also been significant. The number of taxpayers increased from 6.9 crore in FY22 to 9.2 crore in FY25. This reflects improved compliance and formalization of the economy.

What is the impact of GST changes?

Significant changes have been indicated in the indirect tax system, i.e., GST. The government is moving towards a two-slab system (5% and 18%) under GST 2.0. GST has been reduced to 5% on everyday items such as soap, shampoo, and bicycles, while items like milk, bread, and cheese have been exempted from tax. The biggest relief is the proposal to eliminate GST on life and health insurance policies, which will make insurance more affordable. Overall, the Economic Survey 2025-26 indicates that the government wants to move forward with the tax system not through strict enforcement, but with simplicity, technology, and trust.